As of Wednesday, Spotify Technology S.A.’s (NYSE:SPOT) stock closed at $78.26, up from $75.25 the previous day. While Spotify Technology S.A. has overperformed by 4.00%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, SPOT fell by -67.80%, with highs and lows ranging from $253.05 to $69.29, whereas the simple moving average fell by -30.04% in the last 200 days.
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On October 20, 2022, Piper Sandler started tracking Spotify Technology S.A. (NYSE: SPOT) recommending Neutral. A report published by Citigroup on July 07, 2022, Reiterated its previous ‘Buy’ rating for SPOT. Wells Fargo also Upgraded SPOT shares as ‘Equal Weight’, setting a target price of $124 on the company’s shares in a report dated June 15, 2022. Pivotal Research Group April 28, 2022d its ‘Buy’ rating to ‘Hold’ for SPOT, as published in its report on April 28, 2022. Redburn also rated the stock as ‘Neutral’.
Analysis of Spotify Technology S.A. (SPOT)
Further, the quarter-over-quarter increase in sales is 21.40%, showing a positive trend in the upcoming months.
One of the most important indicators of Spotify Technology S.A.’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. The goal here is to ensure that your current return on equity of -9.00% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.30, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can also provide valuable insight into volatility, and SPOT is recording 1.83M average volume. On a monthly basis, the volatility of the stock is set at 4.84%, whereas on a weekly basis, it is put at 4.98%, with a loss of -5.14% over the past seven days. Furthermore, long-term investors anticipate a median target price of $115.68, showing growth from the present price of $78.26, which can serve as yet another indication of whether SPOT is worth investing in or should be passed over.
How Do You Analyze Spotify Technology S.A. Shares?
Along with the fundamentals, it is also important to consider how many employees own shares of the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 27.18%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 56.40% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in SPOT shares?
The recent increase in stakes in SPOT appears to be a result of several institutional investors and hedge funds increasing their positions. Baillie Gifford & Co.’s position in SPOT has increased by 6.74% in the first quarter. The company now owns 27,964,517 shares of the stock, with a value of $2.25 billion, following the purchase of 1,764,880 additional shares during the last quarter. T. Rowe Price Associates, Inc. made another decreased to its shares in SPOT during the first quarter, downing its stake by -24.32%. During the last quarter, the company picked up -3,833,838 additional shares for a total stake of worth $961.21 million, bringing number of shares owned by the company to 11,928,622.
During the first quarter, Morgan Stanley Investment Managem added a 5,812,519 position in SPOT. Alecta Pension Insurance Mutual purchased an additional 0.25 million shares in the last quarter, increasing its holdings by 8.97%, now holding 3.04 million shares worth $244.61 million. SPOT shares are owned by institutional investors to the tune of 56.40% at present.